Is Refinancing a Mortgage 'Starting Over?'

Is Refinancing a Mortgage "Starting Over?"

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[anaiyasmommy]

I purchased my home three years ago. I refinanced for a lower interest rate that reduced my mortgage payment by $600. I’m adding that savings to principal and based on the amortization schedule, the house can be paid off in about 15-16 years.

[DrThunder]

He may think it is starting over, because they always propose to reset to 30 years. However, as stated you can get a 20, 15, or 10 year mortgage, not go back to 30.

[nephetula]

If you're extending the remaining term or taking cash out, it could be classified as "starting over". The thing to remember is that refinancing should have one of two goals. Either it lowers your payments, or shortens the term. What's to be avoided is extending the term, or increasing the total debt. Remember, debt is tolerable as long as it's decreasing. What ruins people is a debt amount that doesn't go down, or even worse, a debt amount that increases.

[TheRealDealNeal]

This is why I watch this show. I did not know that you pay interest like this on a mortgage. Makes total sense now

[OhShunz]

Very clear and concise. Have a great weekend.

[WillOnYT]

Mortgage Loan Originator here-
They absolutely need to refinance

[MillionaireMindsetClub]

You are almost certain to get a better interest rate than what you have right now.

[beastfromtheeast]

Lol, just because it’s a 30 year mortgage doesn’t mean it takes you 30 years to pay it.

[TrHard]

All refinancing does is gets a lower interest rate. You still want to pay it off asap.

[elmagnificodep]

I refinanced for no money down and no fees. I got a lower APR and I told them I would only do it for the remaining term. I wasn’t starting over. I lowered my payment by $100 and will have the same end date.

[Mattius]

I refinanced and they just wrote a new mortgage on the years left we have to pay off. Reduced our payments $300 a month but paying extra on the Principal because of the lower payment.

[BengalTiger]

I refinanced from 4.25% to 2.75% and went from 28 years to 20, all while dropping my payment by $100..lol

[JWH]

It would be like starting over if you refinanced back into a 30 year mortgage.

[ernestogalvan]

They are absolutely refinancing for 30 years.

[SeanManks]

If you can refinance with a lower interest rate & time duration, only then it’s a good decision to refi.

Also, it’s a good idea to check what the final closing, processing, home appraisal …. etc. cost is, as that amount might be thousands of dollars, that banks usually suggest to get it “included” in the loan amount, so not to get money to the table. Most people neglect this part & get their loan amount go up. 👍

[igorseprak]

Refinancing is for suckers. Your original amortization must never be touched. Fools love to refinance...

[ATLIEN]

Yeah where is he getting that mortgage are not top loaded with interest? I don't quite understand please explain???

[likegods]

In my opinion when you refinance a home, you are giving the bank another 30 years of them hoping you don't pay so they keep the home and the equity .

[rashadthewealthcoach]

As long as your term is less than what you have remaining now and you are dropping your rate, you absolutely should refinance.

[gottesma]

Depending on the costs of the refi (appraisal, title insurance, settlement fees, recording taxes, etc.), they might be better off just paying it off aggressively. How's the barn business doing? Is it growing?